Magic Software Enterprises (Magic Software Enterprises) 1-Year ROIIC % : 48.14% (As of Sep. 2023)

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What is Magic Software Enterprises 1-Year ROIIC %?

1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year. Magic Software Enterprises's 1-Year ROIIC % for the quarter that ended in Sep. 2023 was 48.14%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Magic Software Enterprises's 1-Year ROIIC % or its related term are showing as below:

MGIC's 1-Year ROIIC % is ranked better than
74.99% of 2519 companies
in the Software industry
Industry Median: 2.89 vs MGIC: 48.14

Magic Software Enterprises 1-Year ROIIC % Historical Data

The historical data trend for Magic Software Enterprises's 1-Year ROIIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Magic Software Enterprises 1-Year ROIIC % Chart

Magic Software Enterprises Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

1-Year ROIIC %

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-312.23

3.79

19.29

37.94

33.56

Magic Software Enterprises Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
1-Year ROIIC %	Get a 7-Day Free Trial															32.44	33.56	-61.88	31.31	48.14

Competitive Comparison of Magic Software Enterprises's 1-Year ROIIC %

For the Information Technology Services subindustry, Magic Software Enterprises's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Magic Software Enterprises's 1-Year ROIIC % Distribution in the Software Industry

For the Software industry and Technology sector, Magic Software Enterprises's 1-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Magic Software Enterprises's 1-Year ROIIC % falls into.

Magic Software Enterprises 1-Year ROIIC % Calculation

Magic Software Enterprises's 1-Year ROIIC % for the quarter that ended in Sep. 2023 is calculated as:

1-Year ROIIC %	=	1-Year Incremental Net Operating Profit After Taxes (NOPAT)^**	/	1-Year Incremental Invested Capital
	=	( 47.2989 (Sep. 2023) - 49.3532 (Sep. 2022) )	/	( 333.209 (Sep. 2023) - 337.48 (Sep. 2022) )
	=	-2.0543	/	-4.271
	=	48.10%^***

** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Magic Software Enterprises (NAS:MGIC) 1-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.

Magic Software Enterprises 1-Year ROIIC % Related Terms

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Magic Software Enterprises (Magic Software Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Magic Software Enterprises Ltd (NAS:MGIC) » Definitions » 1-Year ROIIC %

Comparable Companies

Traded in Other Exchanges

MGIC:Israel MGK:Germany MGK:Germany

Address

Yahadut Canada 1 Street, Or Yehuda, Or Yehuda, ISR, 6037501

Website

https://www.magicsoftware.com

Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. It generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel; Europe; Japan, and Other countries.